Digital development through global development initiative

By Justina Joseph Jeyaraj.

THE Global Development Initiative (GDI), which China proposed in 2021, upholds six core principles to pursue robust global economic development. The six principles are staying committed to development as a priority; staying committed to a people-centred approach; staying committed to benefit all while considering the needs of developing countries; staying committed to innovation-driven development; staying committed to harmony between humans and nature; and staying committed to results-oriented actions.

The GDI promotes international cooperation in eight priority areas, the digital economy being one of them.

Globally, the digital economy has experienced unprecedented growth because of the Covid-19 pandemic. The Google, Temasek and Bain, e-Conomy SEA 2022 Report, entitled "Through the waves, towards a sea of opportunity" indicates that South-East Asian Internet users have increased from 360 million to 460 million from 2019 to 2022, and the digital economy is expected to generate approximately US$200bil in gross merchandise value (GMV) in 2022. Malaysia, as a member of the Group of Friends of the GDI, stands to benefit as GDI plays a complementary role in the collective development journey towards achieving the Sustainable Development Goals (SDG) in 2030.

The Malaysian Digital Economy Blueprint outlines six strategic thrusts, including creating an inclusive digital society; and building a trusted, secure, and ethical digital environment.

There are three phases to this blueprint. The initial phase (2021-2022) aims to expedite the adoption of digital technologies, reinforcing the fundamental digital infrastructure required for the subsequent phases.

Phase Two (2023-2025) shifts its focus towards propelling digital transformation and inclusivity throughout the digital economy, with a particular emphasis on ensuring accessibility for citizens and businesses at all levels.

Finally, Phase Three (2026-2030) will lay the groundwork for robust and sustainable growth in the future, positioning Malaysia as a leading regional market for digital products and a provider of innovative digital solutions.

On May 15, Prime Minister Datuk Seri Anwar Ibrahim, and the president of the World Economic Forum, B?rge Brende, launched the Centre for the Fourth Industrial Revolution Malaysia (C4IR Malaysia). This establishment is an independent centre operating under the auspices of the World Economic Forum and aims to support Malaysia's overarching digital economy vision as outlined in its 4IR Policy launched in 2021 and the Malaysia Digital Economy Blueprint.

Malaysia's Finance Ministry said in a statement that the establishment of C4IR will expedite the adoption of technology, contributing to a more equitable, inclusive and sustainable growth trajectory for Malaysia during the post-Covid-19 pandemic recovery.

Notably, being the first centre of its kind in South-East Asia, this initiative exemplifies the government's strong commitment to prioritise technology as a pivotal catalyst for economic advancement and post-pandemic resurgence. Furthermore, it underlines Malaysia's aspiration to emerge as a regional leader in the digital economy.

The Prime Minister, in his speech at the C4IR launching ceremony, said he hoped this centre would further strengthen Malaysia's human-centred approach to navigating the Fourth Industrial Revolution. Through this, Malaysia aims to enter the top 20 nations in the Global Innovation Index and improve the People's Wellbeing Index score. This is proof of Malaysia's efforts to become an advanced, digitally driven, high-income nation and focus on balanced and sustainable economic growth.

The GDI can complement Malaysia's efforts in developing the digital economy, as the digital economy is one of the eight areas of practical cooperation with international partners.

Among others, it includes strengthening digital capacity building and bridging the digital divide, fostering international cooperation in the development of digital industries and digitalisation of traditional sectors. Furthermore, through the GDI, China will facilitate the integration of digital technology into the real economy, empowering the transformation and modernisation of traditional industries through digital technologies, bolstering pandemic response efforts.

The GDI will also facilitate economic recovery and growth through digital means while promoting synergy between digital and green transformations. Through the GDI, digital technology solutions will be employed to address and alleviate poverty.

At the Malaysia-China Digital Economy Forum 2022, organised by the Malaysia-China Business Council (MCBC) on Sept 29, 2022, China's Ambassador, Ouyang Yujing, highlighted the Chinese government's increased emphasis on the advancement of the digital economy during his speech. It was mentioned that the cooperation between China and Malaysia in the digital economy has yielded fruitful outcomes and possesses substantial potential. Moving forward in digital communication cooperation, it is crucial for both countries to implement high-level agreements, expedite strategic plans, and execute relevant memoranda of understanding.

China and Malaysia are urged to bolster their collaborative endeavours with a strategic focus on advancing technologies such as 5G, cloud computing, big data, and smart cities, among other relevant domains. Concurrently, both nations may intensify their efforts in the realm of digital governance by proactively formulating regulatory frameworks and benchmarks for digital trade and governance within the parameters of the Regional Comprehensive Economic Partnership Agreement (RCEP). Furthermore, an expansion and reinforcement of the "digital free trade zone" should be pursued to complement these endeavours.

Through this, it is seen that there is much potential for Malaysia and China to collaborate to develop the digital economy in Malaysia. It is hoped that this fosters a harmonious global community and paves the way for a more promising future, benefiting all.

Justina Joseph Jeyaraj is a lecturer at Tunku Abdul Rahman University of Management and Technology (TAR UMT). The views expressed here are entirely the writer's own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the Southeast Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT), in conjunction with the 10-year anniversary of the Belt and Road Initiative.